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MANAGEMENT UPDATE.

POWERING UP THE STATES

There’s been growing concern about increasing demands for power and state leaders are forced to deal with the issues of reliability, affordability, infrastructure and the long-term capacity of the electric grid.


The Council of State Governments (CSG) has just come out with a report titled “Powering the States: How States are Balancing Energy Demand Reliability and Cost.” which provides a thorough examination of the ways in which states can deal with these challenges. It couldn’t be timelier. As the report states, “U.S. electricity demand for residential and industrial use is expected to grow 50 to 78% by 2050, with additional pressure coming from data centers, electric vehicles, manufacturing and the continued electrification of buildings.”



David Adkins, CSG executive director/CEO, stated in the report that it highlights “how states are responding to rising energy demand through strategic investments, infrastructure planning, regulatory oversight and public-private partnerships while offering practical insights that leaders can adapt to their own communities.”


The amount of action at the state level is staggering. In fact, the CSG reports that “Since Jan. 1, 2026, state legislators have introduced 430 bills related to recommendations from the National Association of State Energy Officials (NASEO), as well as 717 bills addressing power generation from key energy sources. Beyond legislative activity, states are using financial, regulatory, efficiency and permitting tools to guide future energy development.”


The following are takeaways from the report, which provide guidance to states as they grapple with this complex issue: 


  • “Working with their constituents and relevant stakeholders, state legislators could choose an energy portfolio mix that best fits their state’s needs.”

  • “Geographic location, the availability of natural resources and prevailing political context will help determine how states tackle their energy challenges.”

  • “When feasible, public and private partnerships can help to meet the growing energy needs of constituents.”

  • “In partnership with their state leaders, citizens can play a key role in informing the priorities for shaping the energy future of their state.

  • “As states meet the challenges of using residential and commercial energy demands, they will likewise generate relevant workforce and economic development opportunities.”


Additionally, the report points to a number of areas that states should be aware of as they seek the power they need.


For example, it calls for federal permitting reform which would involve changing laws to hasten approval of new energy infrastructure. But, of course, meeting the demands of infrastructure maintenance and expansion means that “the energy sector may need to fill over 500,000 new jobs,” writes the CSG. 


This creates a kind of a silver lining around the cloud because, “permitting reform provides a great opportunity for economic growth. Department of Energy data shows that the quantity of energy sector jobs has increased in all states except Indiana and Michigan.”


The report provides in depth information about many other ramifications of the drive to provide sufficient power, pointing out, for one, that “states can also reduce strains on grid infrastructure by implementing energy storage innovations and developing promising technologies that can be used to power energy-intensive facilities such as data centers and virtual power plants.”


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